by ZHAO Xiaojuan

Chinese retailer Pangdonglai's top-performing store is on track to surpass the annual sales benchmark set by Sam's Club's best-performing outlets in China, showcasing how a regional disruptor is breaking into the league of China's top supermarket players.

The Times Square store in Xuchang, Henan province, posted sales of 2.58 billion yuan (US$355 million) as of June 2, according to company data. If its current momentum holds, the store is likely to exceed US$500 million in annual sales by the end of 2025. This would put it on par with top-performing Sam's Club locations in China, where Walmart China president Zhu Xiaojing projected at the 2025 investors' conference in April that eight stores would reach annual sales above the US$500 million mark.

Pangdonglai operates 13 stores across Xuchang and Xinxiang in Henan Province, along with an online mall and a wholesale unit. Founded in 1998 by Yu Donglai, the company has developed a distinct retail approach emphasizing meticulous management, customer service and product quality. While it has drawn some lessons from international retailers like Sam's Club and Costco, Pangdonglai's success is rooted in innovations tailored to local consumer preferences.

The company's top three stores—Times Square, Dafang, and Angel City—generated more than half of total revenue in the first five months of the year, with sales of 2.58 billion yuan, 1.44 billion yuan, and 1.41 billion yuan respectively. By comparison, leading domestic retailers Yonghui Superstores and RT-Mart reported average single-store annual sales of around 100 million yuan and 140 million yuan respectively in 2024.

While Pangdonglai introduced measures such as membership limits and real-name registration to manage growing foot traffic, demand remains strong. A reseller based in Xuchang told Jiemian News that she has expanded her customer network to six WeChat groups, totaling around 3,000 users this year, sourcing products mainly from the Times Square store for their variety and quality. Popular items include Pangdonglai's house brands of liquor, oatmeal, juice, and freshly prepared foods.

The group's overall sales momentum is also accelerating. According to data disclosed on Pangdonglai's official website, the company's total sales reached 10.176 billion yuan as of June 2, already 60 percent of its 2024 full-year revenue of 16.96 billion yuan and nearing the 10.7 billion yuan it posted for all of 2023. Based on this pace, Pangdonglai's full-year sales could exceed 20 billion yuan (US$2.8 billion) in 2025, despite founder Yu Donglai stating at a retail industry event in March that he intended to cap sales at around 20 billion yuan to maintain manageable growth.

Pangdonglai is also expanding cautiously beyond its home market. This year, it announced plans to open its first store in Zhengzhou, which founder Yu Donglai described as a "supermarket with an artistic flair." The project, located at the East Plaza of Zhengzhou East High-Speed Railway Station, is currently under construction.

As Pangdonglai builds on its momentum, its ascent underscores the growing competition in China's premium supermarket sector.